If an ex-dividend date is September 7....

[jnbadger]

With Lightspeed, the trading day ends at 8pm ET. If you bought a stock the trading day before X-Date, and at end of the day you have that long, you will get the dividend on the pay date.

Yes. The NMCES hours are from 4AM to 8PM. So considering T+2, and the record date is on the day after Ex, you will get the dividend if you buy one business day before the Ex date. Even if it's at 7:59PM (Record date being 2 days after purchase, and 1 day after Ex).

But this got me curious, and a couple of articles said it matters what exchange you are trading on. I think you're ok in the U.S. with T+2, but always look into the record date relative to the ex date, depending on the stocks and the exchange. This info is everywhere on the internet.

 

[SoyUnGanador]

You have to own the stock at least since the previous trading day of the 7th. It has nothing to do (semantically) with the opening on the 7th.
If you sell the stock the previous trading day of the 7th, you won't get the dividend.
If you sell the stock on or after the 7th, you will get it.

Thanks rb7, but I am still confused. What is the exact second when I have to hold the stock to get the dividend? At some point they have to look at the records and say "this is the point in time where we decide who gets paid the dividend and who does not." Assume the 7th is ex-dividend, and the 6th is not a holiday.

Is it at the regular close of markets on the 6th?

Is it some extended close of markets on the 6th?

Is it the opening on the 7th (sounds like the answer is no)?

Or any time thereafter?

 

[ph1l]

Thanks rb7, but I am still confused. What is the exact second when I have to hold the stock to get the dividend?

https://seekingalpha.com/article/765801-how-ex-dividend-dates-work#:~:text=If you sold shares before,do qualify for the dividend.

If you sold shares on or after the ex-dividend date, whether in pre-market trading, regular trading, or after-hours trading, you do qualify for the dividend.

So the earliest time to sell and still get the dividend would be when the pre-market opens (4:00:00 AM ET) on the ex-dividend date.

 

[SoyUnGanador]

https://seekingalpha.com/article/765801-how-ex-dividend-dates-work#:~:text=If you sold shares before,do qualify for the dividend.


So the earliest time to sell and still get the dividend would be when the pre-market opens (4:00:00 AM ET) on the ex-dividend date.
View attachment 267276

Thank you ph1. So my read of that is that you have to hold the stock through the bitter end of the day before the ex-dividend date, even through after hours trading, then you can sell pre-market, at open or anytime after the open the next day (ex-dividend day) and still get the dividend. Sound right to you?

Thank you.

 

[ph1l]

Thank you ph1. So my read of that is that you have to hold the stock through the bitter end of the day before the ex-dividend date, even through after hours trading, then you can sell pre-market, at open or anytime after the open the next day (ex-dividend day) and still get the dividend. Sound right to you?

Yes, that sounds correct.

 

[SoyUnGanador]

Thank you much ph1l!